Consider a recent proposal by former Rep. Bob Walker. The federal government wouldn't need to spend any taxpayer dollars if it gave the first business to construct a permanent lunar base with its own money a 25-year exemption from all federal taxes on all of its operations, not just those on the Moon. Think of all the economic activity that would be generated if a Microsoft or General Electric decided to build a base! And the tax revenue from that activity probably would offset the government's revenue losses from such an exemption.

Also consider creating enterprise zones in orbit would help make up for government errors of the past. Rep. Dana Rohrabacher proposes a "Zero Gravity, Zero Tax" plan that would remove an unnecessary burden from "out-of-this-world risk-takers."

What kind of space businesses would you pursue or invest in, if it was all tax free?

NASA will also need to do business in new, innovative ways. For example, if a certain technology is needed for a moon mission, NASA could offer a cash prize, similiar to the XPRIZE, for any party that can deliver it. The federal government used such an approach for aircraft before World War II, modeled after private prizes that helped promote civil aviation.

Even if the federal government foots the bill for a moon base, it should not own it. Rather, NASA should partner with consortia of universities, private foundations and even businesses that are interested in advancing human knowledge and commercial activities. NASA could simply be a tenant on the base.

If we're true to our nature, we will explore and settle planets. But only individuals with vision, acting in a free market, will make us a truly space-faring civilization.

woa.... for microsoft or some other giant company like that a 25 year exemption.... man that's probably at least $100 billion, if not more. if that goes through there'll probably be 5-10 companies either putting one up or trying to put one up, and a lot of them may succeed. wouldn't that be awesome if there's, instead of one moon base in what, 2030 when bush was planning, there are 5, each from different companies, maybe more who knows.

wouldn't that be awesome if there's, instead of one moon base in what, 2030 when bush was planning, there are 5, each from different companies, maybe more who knows.

Actually, the new Bush space plan doesn't call for any moon base, at all. That is a misperception created when the details of the plan were leaked, but the actual plan only makes reference to using the moon as a steppingstone to further exploration.

Undertake lunar exploration activities to enable sustained human and robotic exploration of Mars and more distant destinations in the solar system; Starting no later than 2008, initiate a series of robotic missions to the Moon to prepare for and support future human exploration activities; Conduct the first extended human expedition to the lunar surface as early as 2015, but no later than the year 2020; and Use lunar exploration activities to further science, and to develop and test new approaches, technologies, and systems, including use of lunar and other space resources, to support sustained human space exploration to Mars and other destinations.

why not both ones? the exemption only applies for one who gets a moon base up and running (the first one i assume), but the tax free thing could apply for all the economic activity that takes place in space, at least until the economy up there's big enough and self-sustaining enough to justify taxation.